"Article 34, which remains in effect, requires voter approval before public housing is built in a community. At the time it passed, the real estate industry argued taxpayers should have a right to vote on low-income housing projects because they were publicly funded infrastructure similar to schools or roads. The campaign also appealed to racist fears about integrating neighborhoods and featured heated rhetoric about the need to combat socialism."

On February 3, 2019, the LA Times reported, Article 34 grew out of a fight in the northern coastal city of Eureka in 1950. Residents there collected signatures to overturn a decision to build public housing financed by a federal program inaugurated during the New Deal. Eureka unfortunately remains racially, and demographically divided. Nonwhite residents under 50 years-old consistently report being excluded from participating in Eureka events. Eureka received national attention because a local "progressive" group was excluding nonwhites, whether intentional or not.

We receive complaints younger people are also being excluded while other young people appear to have cult like allegiance to these groups. Calling themselves environmentalists some groups have joined forces with slumlords in Eureka to prevent any low-income housing from being developed. Eureka's politicians are often backed by the same lawyers and bankers each election. Rumors are circulating local grants are being channeled to benefit national political parties while Eureka falls into disrepair.

February 3, 2019

Fred Fletcher

California Proposes Reducing Cannabis Taxes to Fight Illicit Market

Assembly Bill 286, dubbed the Temporary Cannabis Tax Reduction bill, would temporarily cut state excise taxes for legal marijuana retailers from 15 percent to 11 percent and also suspend cultivation taxes altogether through 2022. The proposed legislation, which is sponsored by state Treasurer Fiona Ma. “The whole aim of legalization is to compete with the illicit market and to get people to buy from the regulated establishments,” he said. “You can’t do that if the taxes are so high and onerous that people are driven out of that market.”

This is at odds with the taxing scheme in Humboldt were the black market is estimated to be 1,500% larger than the white market. Yesterday, the Court refused to dismiss the Measure S lawsuit attorney Eugene Denson and I filed. The lawsuit seeks to return the tax to a crop tax as approved by the voters. The suit challenges the constitutionality of an amendment our county supervisors made to impose the tax whether or not plants are grown.

Fred Fletcher

January 29, 2019

Human Rights Update

Judge, Haywood S. Gilliam Jr. of the US District Court in Oakland, on Sunday granted a request by more than a dozen states to temporarily block the Trump administration from putting into effect new rules that would make it easier for employers to deny women health insurance coverage for contraceptives.

Saul Loeb/AFP/Getty Images

New Laws in California for 2019

Farm Employee Overtime

In 2016, California became the first state in the U.S. to require employers to pay overtime for farmworkers who work more than eight hours. The first phase of the new rules will begin in January, when agricultural employees will earn overtime after working 9 1/2 hours in a day or 55 hours in a week. Currently, California farmworkers can get overtime after working 60 hours in a week or 10 hours in a day. The change only applies to businesses that employ at least 26 people. The rules do not apply to smaller agricultural employers until 2022. Discloser, our office consults with agricultural employers on compliance matters and we represent employees on wage and labor claims. Aside from wage and hour claims, sexual harassment and discrimination are constant concerns on the farm.

Street Vendor Permits

A law going into effect in January will allow local governments to design permit programs for vendors and limits when they can be criminally prosecuted. It pertains to anyone selling food or other merchandise from a pushcart, stand or “non-motorized conveyance.” I anticipate the City of Eureka will embrace this new law and its economic benefits. I predict the County will ignore this law until the County is forced to follow it by a judge.

Home Kitchen Businesses

A new law encourages Counties (like Humboldt) to permit home kitchens for the purpose of selling food products. California Assembly member Eduardo Garcia, who authored the bill, says that homemade food sales are a vital part of self-reliant communities. “Legitimizing these home businesses will offer a means of economic empowerment and pathways for many to achieve the ‘American dream,’”Garcia said when the bill was signed. Humboldt historically resists new opportunities which provide residents access to residual income. Perhaps after the County Supervisors election in 2020 progress will be made on this front.

Fred Fletcher

January 17, 2019

The Measure S Lawsuit

Measure S is the cannabis cultivation tax the voters passed. We are challenging the County Supervisor's decision to amend Measure S as passed by the voters. The Supervisors amended the tax to apply to the property owner, not the farmer, and regardless of whether any crop is grown.

Yesterday, we filed our response to the County's demurrer to the Measure S lawsuit. (Set to be heard January 28, 2019.) The County hired a large Sacramento Firm (founded the year I was born) to defend the lawsuit. They argue it's impossible to tax farmers for the actual crop grown because the County can't verify how much was grown. We informed the Court, governments since the beginning of governments have taxed farmers for crops actually grown, and we cited the Book of Genesis as our evidence.

The amendments by the Supervisors have been misreported. The Supervisors amended Measure S to tax the permitted area regardless of the amount of crop grown. As such, the supervisors have amended the tax to be assessed against fallow land, without regard to crop grown. We provided the Court authority that Measure S as amended is a property tax and is unconstitutional. We ask the Court to return Measure S to its original state which acted as an excise tax on legal crop actually grown.

In a 3-0 decision, the 4th U.S. Circuit Court of Appeals said Phyllis Randall, chair of the Loudoun County Board of Supervisors, violated the First Amendment free speech rights of Brian Davison by banning him for 12 hours from her “Chair Phyllis J. Randall” facebook page.

Last election my office received a few complaints from citizens who were censored for making comments critical of politicians, on the left and right (somehow our local politics are becoming politically polarized). Now these citizens may have recourse. This First Amendment decision could impact local elections nationwide by allowing the public to be heard.

Fred Fletcher

January 8, 2019

Update on Nation v Trump filed in the 9th Circuit

This lawsuit challenges HUD's rule which forces subsidized apartments to evict medical cannabis users. Plaintiff was evicted from her HUD apartment on July 10, 2018 when a maintenance man discovered some medical cannabis in her bedroom. She remains homeless and is not alone.

The lawsuit not only challenges HUD's rule but relies upon Murphy v NCAA (decided May 2018) to challenge the constitutionality of the Controlled Substance Act itself relative to medical marijuana in the State of California. The Supreme Court in Murphy v NCAA resurrected from near death the anti-commandeering doctrine, which in laymen's terms means the Congress cannot make orders directly to the States.

We are optimistic this lawsuit will prevail. If the District Court issues an order in our favor appealing the decision would pose a political pitfall for the Trump administration.

I will update this one.

January 3, 2019

Fred Fletcher

Update on Volkswagen Diesel Fraud Case

We filed an action in Butte County on May 17, 2018 with the intent of having a jury decide punitive damages. We would be the first party to bring the defeat device case to jury trial. Peer reviewed studies proved thousands of people with lung diseases died from the fraud.

Section 1.

Title
15, Chapter 155, Section 155.051, [A Agricultural Districts], paragraph (C),
[Permitted and conditional uses], is hereby amended to remove the following use
(the remainder of the text in the table
is unchanged and is omitted):

Medical cannabis cultivation
facilities, mixed light, not more than 10,000 square feet of cultivation
area, subject to the provisions of Chapter 158

C

Section 2.

Title15,Chapter155,Section155.054,[OROfficeandMulti-FamilyResidentialDistricts], paragraph (C) [Permitted and conditional uses], is
hereby amended to read as follows (the
remainder of the text in the table is unchanged and isomitted):

Lodging
houses and bed and breakfast inns in which not more than 15 paying guests may
be lodged or boarded

P

Mobile vendors

P

Section
3.

Title15,Chapter155,Section155.054,[OROfficeandMulti-FamilyResidentialDistricts], paragraph (C) [Permitted and conditional uses], is
hereby amended to read as follows (the
remainder of the text in the table is unchanged and isomitted):

Administrative,
business, and professional office, including medical offices, and any other
use which is determined by the Commission, as provided in

§§ 155.265 through 155.270 of this chapter, to be
similar to an office use

Cannabis
manufacturing facilities, non-volatile, 5,000 square feet or less of floor
area, subject to the provisions of Chapter 158

MC

Cannabis non-volatile manufacturing facilities,
more than 5,000 square feet of floor area, subject to the provisions of
Chapter 158

C

Cannabis microbusiness
facilities subject to the provisions of Chapter 158

C

C

C

Cannabis retail facilities subject to the
provisions of Chapter 158

C

C

C

Cannabis research and
development facilities, may be either principally or conditionally permitted
pursuant to §158.021(F)

P/C

P/C

Cannabistestingfacilitieswherenocommercialcultivation,processing, manufacturing, wholesale, retail or distribution
of medical cannabis occurs, subject to the provisions of Chapter158

P

P

Card rooms

P

P

Section 8.

Title
15, Chapter 155, Section 155.098 [Permitted uses], paragraph (A) [ML Limited
IndustrialDistricts],subparagraph(1)[Lightindustrialandrelateduses,includingonly:]is
hereby amended to read as follows (the
remainder of the text in the table is unchanged and isomitted):

ML PERMITTED USES

Mattress manufacture

Metal finishing and plating

Section 9.

Title
15, Chapter 155, Section 155.098 [Permitted uses], paragraph (A) [ML Limited
IndustrialDistricts],subparagraph(1)[Lightindustrialandrelateduses,includingonly:]is
hereby amended to read as follows (the
remainder of the text in the table is unchanged and isomitted):

ML PERMITTED USES

Bus depots

Cannabis cultivation
facilities, indoor, not more than 5,000 square feet of cultivation area,
subject to the provisions of Chapter 158

Cannabis distribution
facilities, cannabis on site, with or without transportation, subject to the
provisions of Chapter 158

Cannabis distribution
facilities, transportation only, no cannabis on site, subject to the
provisions of Chapter 158

Cannabis
manufacturing facilities, non-volatile, more than 5,000 square feet of floor
area, subject to the provisions of Chapter 158

Cannabis manufacturing
facilities, non-volatile, 5,000 square feet or less of floor area, subject to
the provisions of Chapter 158

Cannabis microbusiness facilities, subject to the
provisions of §158.021(F)

Cannabis research and development facilities,
subject to the provisions of §158.021 (G)

Cannabis testing facilities, where no commercial
cultivation, processing, manufacturing, wholesale, retail, or distribution,
subject to the provisions of Chapter 158

Any of the Conditionally
Permitted Uses requiring Additional Findings listed below provided that, on
the basis of the use permit application and the evidence submitted, the
Planning Commission makes the following findings, in addition to the findings
prescribed in § 155.285 of this chapter:

That consideration of all
determinable characteristics of the use that is the subject of the
application indicates that the use has the same essential characteristics as
the uses listed in § 155.098(A)(1) of this subchapter with respect to the
method of operation, type of process, materials, equipment, structures,
storage, and appearance;

That the use will conform with each of the required
conditions prescribed for uses in the ML District in § 155.097 of this
subchapter; and

That the use will not create significantly more vehicular
or rail traffic than the volumes normally created by the permitted uses
listed in § 155.098(A)(1) of this subchapter.

Cannabis cultivation facilities, indoor, not more than 10,000 square
feet of cultivation area,

subject to the provisions of Chapter 158

Cannabis microbusiness facilities, subject to the provisions of
§158.021(F)

Cannabis research and development facilities, subject to the
provisions of §158.021(G)

Section 15.

Title15,Chapter155,Section155.099[MGGeneralIndustrialDistricts](B)[MGGeneral
Industrial Districts], subparagraph (1) is hereby amended to read as follows (the remainder of the text in the table is
unchanged and isomitted):

MG
CONDITIONALLY PERMITTED USES

Manure, peat, and topsoil processing and storage

Section 16.

Title15,Chapter155,Section155.099[MGGeneralIndustrialDistricts](B)[MGGeneral
Industrial Districts], subparagraph (1) is hereby amended to read as follows (the remainder of the text in the table is
unchanged and isomitted):

Cannabis cultivation facilities, indoor, not more than 10,000 square
feet of cultivation area,

subject to the provisions of Chapter 158

Cannabis microbusiness facilities, subject to the provisions of
§158.021(F)

Cannabis research and development facilities, subject to the
provisions of §158.021(G)

Section 18.

Title
15, Chapter 158, Section 158.001 [Findings and Purpose] is hereby amended to
read as follows:

§ 158.001 FINDINGS AND PURPOSE.

(A)The City Council of the City of Eureka, based on evidence presented to
it in the proceedings leading to the adoption of this chapter and subsequent
amendments to this chapter, hereby finds that the illegal and unpermitted
cultivation, processing and distribution of cannabis in the City has caused and
is causing ongoing impacts to the community. These impactsinclude damage to buildings containing
illegal and unpermitted indoor grows, including improper and dangerous
electrical alterations and use, inadequate ventilation leading to mold and
mildew, increased frequency of home-invasion robberies and similar crimes, and that
many of these impacts have fallen disproportionately on residential
neighborhoods. These impacts have also created an increase in response costs,
including code enforcement, building, land use, fire, and police staff time and
expenses.

(B)The City Council acknowledges that the voters of the State of
California have provided a criminal defense to the cultivation, possession and
use of cannabis for medical purposes under the Compassionate Use Act, but that
the Compassionate Use Act does not address land use or building code impacts or
issues arising from the resulting increase in cannabis cultivation within theCity.

(C)The City Council acknowledges that the California legislature passed
the Medical Cannabis Regulation and Safety Act (MCRSA) in 2015 and that the act
allows localjurisdictions to
regulate medical marijuana commerce and a range of medical cannabis license
types in their jurisdictions under the state regulatory framework provided in
the law asamended.

(D)The City Council acknowledges that in 2016, the voters of the State of
California legalized the possession, cultivation, and sale of marijuana for
individuals over the age of21
through the Control, Regulate and Tax Adult Use of Marijuana Act(AUMA).

(E)The City Council acknowledges that the California legislature passed
the Medicinal and Adult-Use Cannabis Regulation and Safety Act. (MAUCRSA) in
2017 which repealed MCRSA and included certain provisions from MCRSA in the
licensing provisions of AUMA, and generally imposes the same requirements on both
commercial medicinal and commercial adult- use cannabis activity.

(F)The City Council acknowledges that sales of cannabis are subject to
taxation by both the City and the state and that the California State Board of
Equalization (BOE) is also requiring that businesses engaging in such retail
transactions hold a seller’spermit.

(G)The purpose and intent of this chapter is to regulate the cultivation,
processing, manufacturing, transport, storage, distribution, and sale of
cannabis and cannabis productsfor
qualified patients with a valid physician’s recommendation and for adults 21
years of age and over in a manner that protects the public health, safety and
welfare of the community and mitigates for the costs to the community of the
oversight of theseactivities.

Section 19.

Title
15, Chapter 158, Section 158.002 [Interpretation and Applicability] is hereby
amended to read as follows:

§ 158.002 INTERPRETATION AND
APPLICABILITY.

(A)No part of this chapter shall be deemed to conflict with federal law as
contained in the Controlled Substances Act, 21 U.S.C. Section 800 et seq., nor
to otherwise permit any activity that is prohibited under that Act or any other
local, state or federal law, statute, rule orregulation. The cultivation, processing, manufacturing, transport,
storage, distribution, and sale of cannabis in the City is controlled by the
provisions of this chapter of the Eureka Municipal Code. Accessory uses and
home occupations, where cannabis is involved, shall be governed by the
provisions of thischapter.

(B)Nothing in this chapter is intended, nor shall it be construed, to
burden any defenseto criminal
prosecution otherwise afforded by Californialaw.

(C)Nothing in this chapter is intended, nor shall it be construed, to
preclude a landlord from limiting or prohibiting cannabis cultivation,
manufacturing, smoking or other related activities by tenants.

(D)Nothing in this chapter is intended, nor shall it be construed, to
exempt any cannabis related activity from any and all applicable local and
state construction, electrical,plumbing,
land use, or any other building or land use standards or permittingrequirements.

(E)Nothing in this chapter is intended, nor shall it be construed, to make
legal any cultivation, transportation, sale, or other use of cannabis that is
otherwise prohibitedunder Californialaw.

(F)All cultivation, processing, manufacturing, testing, transport,
storage, distribution, or sale of cannabis within City limits shall be subject
to the provisions of this chapter, regardless if the cultivation, processing
manufacturing, testing, transport, storage, distribution, or sale existed or
occurred prior to adoption of this chapter or at the time of subsequent
amendments to this chapter.

As a condition
of approval of any use permit or cannabis license approved for a cannabis
facility, the licensee of each cannabis facility shall indemnify and hold
harmless the City and its agents, officers, elected officials, and employees
for any claims, damages, or injuries brought by adjacent or nearby property
owners or other third parties due to the operations at the cannabis facility,
and for any claims brought by any of their clients for problems, injuries,
damages, or liabilities of any kind that may arise from cannabis activities.

(A)For the purposes of this chapter, the following definitions shall apply
unless the context clearly indicates or requires a differentmeaning.

AUMA.
The Control, Regulate and Tax Adult Use of Marijuana Act, and any amendments
thereto.

CANNABIS.
All parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or
Cannabis ruderalis, whether growing or not; the seeds thereof; the resin,
whether crude or purified, extracted from any part of the plant; and every
compound, manufacture, salt, derivative, mixture, or preparation of the plant,
its seeds, or resin. CANNABIS also means the separated
resin, whether crude or purified, obtained from marijuana. CANNABIS also means
marijuana as defined by § 11018 of the Cal. Health and Safety Code as enacted
by Chapter 1407 of the Statutes of 1972. CANNABIS does not include the mature
stalks of the plant, fiber produced from the stalks, oil or cake made from the
seeds of the plant, any other compound, manufacture, salt, derivative, mixture,
or preparation of the mature stalks (except the resin extracted therefrom),
fiber, oil, or cake, or the sterilized seed of the plant which is incapable of
germination. For the purpose of this chapter, CANNABIS does not mean
"industrial hemp" as defined by § 81000 of the Cal. Food and
Agricultural Code or § 11018.5 of the Cal. Health and Safety Code.

CANNABIS
LICENSE. An annual license issued by the Department to allow the
operation of a cannabis facility.

COMMISSION. The Planning Commission of the City.

DIRECTOR. The Director of
Development Services of the City, or his or her designee.

DEPARTMENT. The
Development Services Department of the City.

ENFORCEMENT
OFFICER. Any City employee or agent authorized to enforce any
provisions of this code or any code adopted by the City.

MAUCRSA.
The Medicinal and Adult-Use Cannabis Regulation and Safety Act of 2017,
as amended.

MCRSA.
Medical Cannabis Regulation and Safety Act of 2016, and any amendments
thereto, and formerly known as the Medical Marijuana Regulation and Safety Act
(MMRSA) of 2015.

PRIMARY
CAREGIVER. As defined in Cal. Health and Safety Code §§ 11362.7 et
seq., and as it may be amended from time to time.

QUALIFIED
PATIENT. As defined in Cal. Health and Safety Code §§ 11362.7 et seq.,
and as it may be amended from time to time.

(B)For the purposes of this chapter, the following definitions shall apply
to the personaluse of cannabis
unless the context clearly indicates or requires a different meaning. Terms not
defined herein shall be the same as the definitions inMAUCRSA.

CANNABIS
CULTIVATION AREA. The maximum dimensions used for the cultivation of
cannabis. For the purpose of § 158.010 of this chapter, the allowable
cultivation area shall be the cumulative gross area used for cultivation of
cannabis and shall be measured using either (a) the outward edge of the trays,
pots or other containers used for cultivation or (b) the vegetative canopy,
whichever is greater.

CANNABIS PROCESSING AREA. The maximum dimensions used for the
processing of cannabis. For the purpose of this chapter, the allowable
processing area shall be the cumulative gross floor area used for processing
cannabis.

MEDICAL
CANNABIS. Cannabis, including, but not limited to, concentrates and
extractions, intended to be cultivated or sold for use by medical cannabis
patients in California pursuant to the Compassionate Use Act of 1996
(Proposition 215).

RESIDENCE.
A legal dwelling unit consisting of a room or group of rooms (including
sleeping, eating, cooking, and sanitation facilities, but not more than one
kitchen), which constitutes an independent housekeeping unit, occupied or
intended for occupancy by one household on a long-term basis.

(C)For the purposes of this chapter, the following definitions shall apply
to commercial cannabis, unless the context clearly indicates or requires a
different meaning. Terms notdefined
herein shall be the same as the definitions inMAUCRSA.

BATCH.
A specific quantity of homogeneous cannabis or cannabis products and as
defined in MAUCRSA.

CANNABIS
PRODUCTS. Any equipment, products or materials of any kind which are
used, intended for use, or designed for use in planting, propagating,
cultivating, growing, harvesting, manufacturing, compounding, converting,
producing, processing, preparing, testing, analyzing, packaging, repackaging,
storing, smoking, vaporizing, or containing cannabis, or for ingesting,
inhaling, or otherwise introducing cannabis or cannabis products into the humanbody.

CULTIVATION
FACILITY. A facility for cannabis cultivation for supply to a cannabis
distributor or manufacturer, including a nursery that produces only clones,
immature plants or seeds.

DELIVERY.
The commercial transfer of medical cannabis or medical cannabis
products to a customer.

DISTRIBUTION.
The procurement, sale, and transport of cannabis and cannabis products
between licensed entities. DISTRIBUTION also includes the
inspection, storage, including during quality assurance and batch testing
processes, labeling, packaging and other processes required prior to transport
to a licensed cannabis retailer or cannabis manufacturing facility.

FACILITY
or FACILITIES. A facility, premise, tenant space, site or location
where one or more types of cannabis activity is undertaken.

LICENSEE.
A person who possesses both a state license and a cannabis license
issued by the City to engage in commercial cannabis activity.

LOT. A batch, or a
specifically identified portion of a batch.

MANUFACTURING
FACILITY. A facility for the production, preparation, propagation, or
compounding of cannabis or cannabis products, either directly or indirectly or
by extraction methods, or independently by means of chemical synthesis or by a
combination of extraction and chemical synthesis, and includes a location that
packages or repackages cannabis or cannabis products or labels or relabels its
container.

MANUFACTURING
FACILITY, NON-VOLATILE. A manufacturing facility which does not involve
the manufacturing, processing, generation, or storage of materials that
constitute a physical or health hazard, as listed in Tables 307.1(1) and
307.1(2) of the California Building Code (CBC).

MANUFACTURING
FACILITY, VOLATILE, LARGE. A manufacturing facility which involves the
manufacturing, processing, generation, or storage of materials that constitute
a physical or health hazard in quantities in excess of those allowed in control
areas complying with CBC Section 414, based on the maximum allowable quantity
limits for control areas set forth in CBC Tables 307.1(1) and 307.1(2).

MANUFACTURING
FACILITY, VOLATILE, SMALL. A manufacturing facility which involves the
manufacturing, processing, generation, or storage of materials that constitute
a physical or health hazard in quantities equal to or less than those allowed
in control areas complying with CBC Section 414, based on the maximum allowable
quantity limits for control areas set forth in CBC Tables 307.1(1) and
307.1(2)..

MICROBUSINESS
FACILITY. A facility where one licensee may conduct two or more of the
following cannabis activities: distribution, non-volatile manufacturing, retail
sales, and indoor cultivation with a total cultivation area that does not
exceed the maximum allowed in the zone district.

RESEARCH
AND DEVELOPMENT FACILITY. A facility that offers or performs research
and development of cannabis or cannabis products where no commercial
cultivation, processing, distribution, wholesale, or retail sales of cannabis
or cannabis products occurs.

Growing of plants and the use of
volatile solvents for the purpose of conducting the research and development
may be allowed. RESEARCH AND DEVELOPMENT may include, but is not limited to,
systematic activities intended to create new products, processes, patents;
scientific assessment of the safety and efficacy of cannabis and cannabis
compounds for research and product development purposes; and/or work directed
toward the innovation, introduction and improvement of production, processes,
and/or products.

RETAIL
FACILITY or RETAILER. A physical retail establishment where cannabis or
cannabis products are offered for retail sale and delivery to customers. A
retail facility may be closed to the public, and the retailer may conduct sales
exclusively by delivery.

TESTING
FACILITY. A facility that offers or performs testing of cannabis or
cannabis products where no commercial cultivation, processing, distribution, or
sale of cannabis or cannabis products occurs.

TRACK
AND TRACE PROGRAM. A program or system that enables the City to track
cannabis and cannabis products through the commercial cannabis supply chain.

UNIQUE
IDENTIFIER. A number, digital signature, stamp or combination thereof
that allows for the identification of cannabis or cannabis products at the
level of a batch, lot, or package labeled for individual sale.

VOLATILE
SOLVENTS. As used only in this chapter, shall mean those solvents used
in the manufacture of cannabis products determined to be volatile by the
California Department of Public Health or the Humboldt Bay Fire Department.

(A)Qualified patients shall be allowed to cultivate cannabis for their own
personal use in their personal residence.
In addition, persons 21 years
of age or over shall be allowed to cultivate cannabis for their own personal
use in their personal residence. The cannabis cultivation area for each
residence shall not cumulatively exceed 50 square feet per residence.
Cultivation of cannabis for personal use shall be in conformance with the
followingstandards:

(1)The residence shall remain at all times a residence with legal and
functioning cooking, sleeping and sanitation facilities. Cannabis cultivation
shall remain at all times secondary tothe
residential use of theproperty;

(2)Cultivation of cannabis for personal use shall occur only within a
private residence, or in a self-contained accessory building that is secured,
locked, and fully enclosed and which is for the exclusive use of the resident.
Cultivation of cannabis for personal use shall not displace required off-streetparking;

(3)Cannabis cultivated for personal use shall not exceed ten feet in
height per residence, regardless if cultivated within the residence or in an
accessory building. An Exception Request may be granted for medical cannabis
pursuant to §158.010(B);

(4)If required by Building or Fire Code, the wall(s) adjacent to the
cultivation area shallbe
constructed with 5/8-inch Type X moisture-resistant drywall;

(5)The cannabis cultivation area shall be in compliance with the current
adopted edition of the California Building Code § 1203.4 Natural Ventilation or
§ 402.3 Mechanical Ventilation(or
itsequivalent(s));

(6)The cultivation of cannabis shall not adversely affect the health or
safety of the residents, the residence or accessory building in which it is
cultivated, or nearby properties through creation of mold, mildew, dust, glare,
heat, noise, noxious gasses, smoke, traffic, vibration, surface runoff, or
other impacts, or be hazardous because of the use or storage of materials,
processes, products or wastes, and no odor shall be detectable outside theexterior walls of the individual residence
or accessory structure where cannabis iscultivated;

An Exception Request may be
granted for medical cannabis pursuant to § 158.010(B);

(8)All electrical equipment used in the cultivation of cannabis, (e.g.,
lighting and ventilation) shall be plugged directly into a wall outlet or
otherwise hardwired; the use of extension cords to supply power to electrical
equipment used in the cultivation of cannabisis prohibited;

(9)Any electrical wiring/rewiring shall first require an electrical permit
from the Building Department;

An Exception Request may be granted for medical cannabis pursuant to §
158.010(B); and

(11)From a public right-of-way, there shall be no exterior evidence of
cannabis cultivation occurring at the property, includingodor.

(B)Medical Cannabis Exception
Request.
The cultivation area for medical cannabis may exceed the 50 square foot maximum
per residence, up to a total of 100 square feet ofcultivation area, or the standards in §
158.010(A)(3), (7) or (10) above may be modified, upon approval of an Exception
Request issued by the Director. An Exception Request shall not allow more than
a total medical cannabis cultivation area of 100 square feet per residence,
regardless if cultivated within the residence or an accessory building.

(1)An application for a medicalcannabis

(2)Exception Request shall include the followinginformation:

(a)Written permission from the propertyowner;

(b)An application fee set by resolution of the CityCouncil;

(c)Adequate information and documentation, such as a physician's
recommendation, or verification of more than one qualified patient living in
the residence, to demonstrate why the cultivation area should be allowed to
exceed 50 squarefeet;

(d)The location and size of the requested cannabis cultivationarea;

(e)A materials storage, handling and disposal plan;and

(f)If the Exception Request includes a request to modify the standards
prescribed in § 158.010(A)(3), (7) or (10), documentation and information shall
be provided identifying which standards are proposed to be modified and why
such modification would not detrimentallyaffect
the use of the residence for its intended residentialoccupancy.

(3)If required by Building or Fire Code, the applicant shall make
specifiedimprovements to the
residence with a Building Permit, if one is needed. Such improvements may
include, but are not limited to, electrical systemupgrades.

(4)The Director, in consultation with the Chief Building Official and Fire
Marshal, shall review the submitted application and determine if the specific
circumstances warrant grantingan
ExceptionRequest.

(5)The Exception Request shall become void, and the cannabis cultivation
area in excess of 50 square feet shall be removed one year following the date
on which the Exception Request was issued, unless the Exception Request is
renewed prior toexpiration.

(C)Cannabis cultivation is prohibited as a home occupation. Cannabis
cultivation shall not be considered a residential accessory use. No
distribution of cannabis cultivated for personal use shall beallowed.

(A)Processing of cannabis cultivated at the residence shall be in
conformance withthe followingstandards:

(1)Only cannabis cultivated at the residence in conformance with this
chapter shall be allowed to be processed at theresidence;

(2)The residence shall remain at all times a residence with legal and
functioning cooking, sleeping and sanitation facilities. Cannabis processing
shall remain at all times secondary tothe
residential use of theproperty;

(3)The cannabis processing area shall be in compliance with the current
adopted edition of the California Building Code § 1203.4 Natural Ventilation or
§ 402.3 Mechanical Ventilation(or
itsequivalent(s));

(5)The processing of cannabis shall not adversely affect the health or
safety of the residents, the residence or accessory building in which it is
processed, or nearby properties through creation of mold, mildew, dust, glare,
heat, noise, noxious gasses, smoke, traffic, vibration, surface runoff, or
other impacts, or be hazardous because of the use or storage of materials,
processes, products or wastes and all odor shall be contained within the
exteriorwalls of the residence or
accessory structure where cannabis isprocessed.

(B)Cannabis processing is prohibited as a home occupation. Cannabis
processing shall not be considered a residential accessory use. No sale or
distributing of cannabis processed for personal use shall beallowed.

Section 24.

Title
15, Chapter 158, Section 158.012 [Distributing or Dispensing] is hereby amended
to read as follows:

§ 158.012 DISTRIBUTING OR SALES.

Cannabis
cultivated or processed for personal use as provided for in this chapter shall
not be distributed or sold to any person unless specifically allowed under this
chapter or by State law.

Section 27.

(A)Commercial cannabis activity shall be allowed at commercial cannabis
facilities as follows, provided P for permitted uses or C or MC, for
conditional uses appears in the column below each district. Uses listed with a
C or MC shall be permitted upon the granting of a use permit in accord with the
provisions of §§ 155.280 through 155.299 of thistitle.

Type of Facility

CC

CN

CS

CW

HM

MG

ML

OR

A/AC

Cultivation, indoor, not
more than 10,000 square feet of cultivation area

MC

MC

Cultivation,
indoor, not more than 5,000 square feet of cultivation area

C

P

P

Distribution, cannabis on
site, with or without transportation

P

P

P

Distribution,
transportation only, no cannabis on-site

P

MC

P

MC 158.021(D)

P

P

P

Manufacturing, non-
volatile, more than 5,000 square feet of manufacturing floor area

C

P

P

Manufacturing, non-
volatile, 5,000 square feet or less of manufacturing floor area

(B)In the Waterfront Commercial (CW) zoning district, cannabis research
and development facilities with no plants and/or no manufacturing processes
occur may be allowed above the ground floor of commercial structures with a use
permit granted pursuantto

§§ 155.280 through 155.299 of
this title. Cannabis research and development facilities shall not be allowed
on the ground floor of structures in the Waterfront Commercial (CW) zoning
district.

(C)In the Waterfront Commercial (CW) zoning district, cannabis testing
facilities may be allowed above the ground floor of commercial structures with
a use permit granted pursuant to §§ 155.280 through 155.299 of this title.
Cannabis testing facilitiesshall not
be allowed on the ground floor of structures in the Waterfront Commercial (CW)
zoningdistrict.

(D)In the Waterfront Commercial (CW) zoning district, medical cannabis
distribution facilities that only transport cannabis, and where no cannabis is
located on site may be allowed above the ground floor of commercial structures
with a minor use permitgranted
pursuant to §§ 155.280 through 155.299 of this title. Medical cannabis
distribution facilities shall not be allowed on the ground floor of structures
in the Waterfront Commercial (CW) zoningdistrict.

(E)The cultivation area for commercial cannabis shall be the cumulative
gross floor area of the room or rooms where cannabis plants are grown.

(F)MicrobusinessFacilities.

(1)A Microbusiness Facility shall be allowed in zone districts where all
proposed uses are allowed. For example, a Microbusiness for distribution and
retail can be allowed in any zone district in which both distribution AND
retail are allowed. A Microbusiness for non-volatile manufacturing, distribution
and retail shall only be allowed in a zone district in which all three usesare allowed.

(2)Microbusiness Facilities for cultivation and/or non-volatile
manufacturing shall utilize the same size limitations prescribed for a cultivation
or manufacturing facility in the corresponding zonedistrict.

(3)A Microbusiness Facility shall be principally permitted, except when
located in a zone where one or more uses requires a Conditional (C) or Minor
Conditional (MC) use permit, in which case the Microbusiness Facility shall
also obtain a Conditional (C)or
(Minor Conditional (MC) use permit. For use combinations where both a
Conditional (C) or Minor Conditional (MC) use permit are required, the
Microbusiness Facility shall obtain a Conditional (C) usepermit.

(4)The use of volatile solvents is prohibited in a MicrobusinessFacility.

(G)Research and DevelopmentFacilities.

(1)A Research and Development Facility may be allowed in the zonedistrict.

(2)A Research and Development Facility that utilizes manufacturing
processes, which may or may not include volatile and/or non-volatile solvents,
shall only be approved in a zone district where the corresponding type of
manufacturing facility is allowedand
shall utilize the same size limitations prescribed for the corresponding
facility in the zonedistrict.

(3)A Research and Development Facility with plants (cultivation) shall
only be approved in a zone district where cultivation is allowed and shall
utilize the same size limitations prescribed for the cultivation facility
allowed in the zonedistrict.

(4)A Research and Development Facility utilizing both plants (cultivation)
and manufacturing processes, which may or may not include volatile and/or
non-volatile solvents, shall only be approved in a zone district where both
cultivation and manufacturing facilities are allowed and shall utilize the same
size limitations prescribed for the corresponding type of facility in the zonedistrict.

(5)A Research and Development Facility shall be principally permitted,
except when the use corresponds to a cultivation or manufacturing facility use
requiring a Conditional (C) or Minor Conditional (MC) use permit, in which case
the Research and Development Facility shall also obtain a Conditional (C) or
(Minor Conditional (MC) use permit. For use combinations where both a
Conditional (C) or Minor Conditional (MC) use permit are required, the Research
and Development Facility shall obtain aConditional

Section 28.

(A)The maximum number of retail facilities allowed within City limits
shall be set by Resolution of the City CouncilCity.

(B)Only those medical cannabis retail facilities invited by the City
Council may submit an application for a use permit. The City Council may elect
to invite fewer applicants than the number prescribed in § 158.022(A). The Cityshall:

(1)Release a Request for Qualification (RFQ) for medical cannabis retail
facilities within the City, and including a deadline for acceptance of RFQ
responses;and

(2)A staff-led committee shall review and evaluate all responsive RFQ's
submitted by the deadline to determine which respondents best meet the City's
criteria for a retail facility as set forth in the Scope of Work included in
the RFQ;and

(a)The criteria upon which the committee shall base their review and
evaluation shall include at a minimum, but shall not be limited to, a business
plan, the business experienceand
qualifications of the respondent, and the information required in § 158.030(D);and

Section 29.

(A)A cannabis delivery service that is associated with a permitted retail
facility located within City limits and for which delivery originates from the
retail facility shall only be allowed when the delivery service is described
and included in the use permit for the retailfacility.

(B)Cannabis deliveries originating from outside City limits and delivering
cannabis or cannabis products within City limits shall only be allowed upon the
granting of a mobile businesslicense.

Section 30.

(A)Whether or not a use permit is required, all cannabis facilitiesshall:

(1)Obtain a cannabis license issued by the City on an annual basis
pursuant to §§ 158.030 through 158.032 of thischapter;

(2)Obtain a business license issued by the City on an annual basis
pursuant to Chapter 110 of the Eureka Municipal Code;and

(3)Conform to the regulations prescribed by, and consist of a business
form that satisfies this chapter and State law;and

(4)Diligently pursue and obtain licensure by the state within six months
of beingpermitted to operate in theCity.

(B)Each entrance to a cannabis facility shall be clearly and legibly
posted with a notice indicating that persons under the age of 21 are precluded
from entering the premises, exceptfor
qualified patients, unless accompanied by a parent or legalguardian.

(C)No new permit or license to operate shall be issued for any facility
that is located within a 600 foot radius of an existing public charter or K-12
school. A public charter or K-12 school that locates within 600 feet of an
existing cannabis facility shall not be grounds to deny the annual renewal at
that location of a previously granted cannabis facility permit orlicense.

(D)The operation of cannabis facilities shall not adversely affect the
health or safety of the facility occupants or employees, or nearby properties
through creation of mold, mildew, dust, glare, heat, noise, noxious gasses,
smoke, traffic, vibration, surface runoff, or other impacts,or be hazardous because of the use or
storage of materials, processes, products or wastes, and no odor shall be detectable outside the walls of thefacility.

(E)Signs. No signs are allowed.

(F)Off-street parking. Off-street parking
facilities shall be provided for each use as set forth in §§ 155.115 through
155.124 of this chapter and asfollows:

Type of Cannabis Facility

Parking Use

Cultivation Distribution

Research and development
with plants and manufacturing

Warehousing and distribution

Manufacturing

Research and development with manufacturing

Manufacturing plants and other

industrial uses

Research and development
Retail

Testing

Retail sales and service

(G)Off-street loading. Off-street loading
facilities shall be provided for each use as setforth in §§ 155.135 through 155.141 of thischapter.

(H)Cannabis facility operators shall refrain from the improper storage or
use of any fuels, fertilizer, pesticide, fungicide, rodenticide, or herbicide.
Hazardous materials and wastes from agricultural businesses are regulated by
the Humboldt County Environmental Health Division that administers the
Hazardous Materials program as one of the Certified Unified Program Agencies
(CUPA). This includes the application, inspection, enforcement, and reporting
under the program requirements and standards set by the California
Environmental Protection Agency (CalEPA). Any uses of pesticide products shall
be in compliance with state pesticide laws and regulations enforced by the
County Agricultural Commissioner's Office and the California Department of
PesticideRegulation.

(I)Operators of cannabis facilities shall maintain active enrollment and
participate in a track and trace program as approved by the City. The City may
require participation in a track and trace program separate from the State’s
track and trace program. Any separate program shall be in addition to and not
instead of the State’s track and traceprogram.

(J)Applicants for a cannabis license and/or cannabis facility use permit
or minor usepermit shall undergo a
background investigation as prescribed by theCity.

(K)A licensee shall not change or alter the premises in a manner which
materially or substantially alters the premises, the usage of the premises, or
the mode or character of business operation conducted from the premises, from
the plan contained in the diagram on file with the application, unless and
until written approval by the licensing authority has been obtained. For
purposes of this section, material or substantial physical changes of the
premises, or in the usage of the premises, shall include, but not be limited
to, a substantial change in the mode orcharacter
of businessoperation.

(L)Findings. The Director shall make the
following findings before granting acannabis
license:

(1)That the applicant and the premises for which a license is applied meet
all the requirements and qualify for licensure under this chapter;and

(2)That the applicant has not been convicted of a felony as prescribed in
MAUCRSA, or as amended.

Section 31.

Title
15, Chapter 158, Section 158.030 [Permits and Licensing] is hereby amended to
read as follows:

§ 158.030 APPLICATIONS, USE
PERMITS, LICENSES, AND FEES.

(A)Cannabis license
applications. Applications
for cannabis licenses shall be filed with the Director. The Director shall
issue a cannabis license upon finding that the cannabis facility meets all of
the requirements of thischapter.

(B)Lapse of cannabis license. A cannabis license shall lapse
and shall become void one year following the date on which the cannabis license
became effective unless the cannabis license is renewed pursuant to § 158.032
of this chapter or unless the cannabis license is revoked for a violation of
the terms of the cannabis licenseapplication.

(C)Use permit applications. Applications for use permits
shall be filed with theDirector.

(D)Data to be furnished. Applications for use permits
and cannabis licenses shall be on forms provided by the Department and shall
include all information required in the usepermit application and the supplemental application packet, which
includes, but is not limitedto:

(1)Authorization for the City, its agents and employees, to seek
verification of the information contained within theapplication;

(2)Text and graphic materials showing the site and floor plan for the
cannabis facility including the use of each room or building on thepremises;

(3)The hours and days of the week the cannabis facility willoperate;

(4)The number of persons, per shift, who will be working at the cannabisfacility;

(5)The security measures that will be employed at thepremises;

(6)The odor control measures that will be employed at thepremises;

(7)The chemicals stored or used at the premises, including cumulative
quantities ofeach chemical;

(8)The type and quantity of all effluent discharged into the City's
wastewater and/or stormwater system and a copy of the applicant’s submitted
discharge application orapproved
discharge permit, ifapplicable;

(10)A detailed Cannabis Safety Program, which includes at a minimum, thefollowing,

(a)The process for documenting the chain of custody of all cannabis and
cannabis products from farm toconsumer;

(b)The procedure and documentation process for assuring the safety and
quality of all cannabis and cannabis products; and

(c)The procedure and documentation process for determining quantity
including testing for the major active agents in the cannabis (e.g.,
cannabinoids THC, CBD andCBN).

(E)State License Submittal. An applicant for a cannabis
facility license shall submit an electronic copy of the completed and submitted
State application and all attachments, either along with the City’s cannabis
facility license application, or within five days of the datethe application is submitted to the
State Bureau of Cannabis Control, whichever islater.

(F)Fees. Applications shall be
accompanied by a fee established by resolution of the Council to cover the cost
of handling the application as prescribed in thischapter.

Section 32.

Title
15, Chapter 158, Section 158.031 [Costs and Taxes] is hereby amended to read as
follows:

§ 158.031 COSTS AND TAXES.

The costs to the
City arising from the processing and oversight of Exception Requests under §
158.010(B) and use permits, cannabis licenses, business licenses, and unique
identifiers for a required track and trace program for cannabis facilities, and
the costs of monitoring and ensuring compliance with this chapter, including
investigations, enforcement actions, and disciplinary or abatement proceedings,
will be offset through application fees, annual renewal fees, and fees for
unique identifiers, as adopted by the City Council by resolution and updated as
necessary from time-to-time. In the administration of the permitting or licensing
requirements under this chapter, the City Manager, or his or her
designee, may require as a condition of granting or renewing use permits or
licenses, any information reasonably necessary to implement the intent of this
chapter, to ensure that the cannabis handled under the use permit or license is
grown, tested, processed, manufactured, distributed and/or sold in a manner not
in conflict with this chapter, and to ensure that any and all related sales
taxes are being properly reported and paid.

Section 33.

Title
15, Chapter 158, Section 158.032 [Inspection and Monitoring] is hereby amended
to read as follows:

§ 158.032 INSPECTION AND
MONITORING.

(A)Inspectors with the Development Services, Police, and Public
Works-Building Departments and Humboldt Bay Fire shall be granted access to all
parts of the facility, and may examine the records of a licensee to ensure
compliance with the terms of the cannabis licenseat any time during normal operatinghours.

(B)A cannabis licensee shall submit to the Department an inspection fee
set by resolution of the City Council and shall make a request to the
Department for an inspection of each cannabis facility not more than 90 days
and not less than 30 days prior to the annual expiration of the cannabis
license to assure compliance with the terms of the cannabis license. Inspectors
with the Development Services, Police, and Public Works-Building Departments
and Humboldt BayFire shall be
granted access to all parts of the facility. All records kept pursuant to the
cannabis license shall be open for visual inspection.

(C)If the cannabis licensee fails to submit the inspection fee or request
an inspection within the specified time frame, refuses inspection, or if the
inspection finds that the facility is not operated in compliance with the
approved license application, the cannabis license shall be subject to
revocation and upon cannabis license revocation the facility shall immediately
cease operation.

(D)Within ten business days of the inspection date pursuant to division
(B) above, the City shall either provide a written statement of non-compliance
and a timeline for attaining compliance, or shall renew the cannabislicense.

(E)Within ten days after issuance of a statement of non-compliance, the
determination of non- compliance may be appealed by any interested party to the
Commission pursuant to§

155.377of this title. The appeal shall be made, in writing, on a form provided
by the City Clerk, along with a fee set by resolution of the City Council. The
City reserves the right to determine whether the facility shall continue to
operate during the appealprocess.

Section 34.

(A)A person engaging in commercial cannabis activity without a license
required by this chapter, and/or any violation of this chapter is subject to
administrative, civil, or criminal penalties, as set out in Eureka Municipal
Code § 10.99, in addition to being subject to other remedies provided by law,
including but not limited to, injunctive relief, nuisance abatement action,
summary abatement of immediately hazardous conditions, and all other applicable
fines, penalties and remedies. Daily monetary penalties of up to three times
the amount of the license fee for each violation may be assessed, and a court
may order the destruction of cannabis associated with that violation in
accordance with Section 11479 of the Health and Safety Code. Each day of
operation shall constitute a separate violation of this chapter. A violator
shall be responsible for the cost of the destruction of cannabis associated
with his orherviolation. This
is a chapter adopted to address public health and safety issues, and as such,
carries with it an express legislative intent to be interpreted strictly,
enforced with an emphasis on public and community safety, and enforced
rigorously in a manner such as to deter furtherviolations.

(B)Whenever an enforcement officer as defined in Eureka Municipal Code §
10.38 determines a cannabis facility or licensee has failed to comply with the
regulations set forth in this chapter, or determines an action, or inaction by
a cannabis facility or licensee threatens or negatively impacts, or may, in the
opinion of the enforcement officer, threaten or negatively impact the public
health, safety, and/or welfare, the enforcement officer may issue a notice of
violation which provides a timeline for compliance, and may, at his or her
discretion, require all or part of the facility’s operations be immediately
modified, or may immediately issue a noticeof suspension to suspend a cannabis facility license. Suspension of a
cannabis facility license shall mean all operations shall immediately cease,
and shall not be resumed unless or until the suspended license isre-instated.

(C)Provided the enforcement officer determines that all violations have
been correctedwithin the time
specified in the notice of violation, a hearing pursuant to this section shall
not be held, and following written notice from the enforcement officer, operations
may resume. If the enforcement officer determines that any or all violations
listed in the notice of violation have not been corrected within the time
specified, the cannabis facility license shall be suspended, and the
enforcement officer shall provide a written notice of suspension to thelicensee.

(D)Whenever a cannabis facility license is suspended, a hearing pursuant
to the administrative citation hearing procedures set forth in Chapter 10 of
the Eureka MunicipalCode will beheld.

(E)After considering all of the testimony and evidence admitted at the
hearing, the hearing officer shall issue a written decision to reinstate the
license, reinstate the license with modifications, or may revoke the license,
and shall state in the decision the reasonstherefor.

(F)The decision of the hearing officer shall be final and shall be
provided to the Cannabis Facility or Licensee within 15 days following the date
of thehearing.

(G)When a cannabis facility license has been permanently revoked pursuant
to §§ 158.032 or 158.033, the same or substantially the same applicant(s) shall
not apply for or be granted a new cannabislicense.